Saturday, April 1, 2017

Indecision Is Very Likely Over

SGS  Market Timer Status:  LONG 
LONG as of close of November 11, 2016
SGS is a Long-Term (weeks to months) Timer

SGS remained unchanged for the week, signaling that Big Money is still indecisive.  Chances are good, however, that Big Money would be forced to make a decision this coming week.  SGS would tick significantly higher or lower depending on what Big Money decides to do.

If Trump's Russia-gate starts to snowball, then we should see a sell-off, SPX testing and failing support at its TUL line, SGS crossing its zero line and turning "SHORT".

My Outlook

If Russia-gate develops legs, then chances would be high that SPX sells off to test its PUL-2 around 2250 and possibly its 50 W-SMA around 2200. Otherwise, indices would start pushing higher to challenge their recent all-time highs.

My Plan

No change since last week, I am going to follow SGS and start buying SPY if SGS starts to uptick and closes above its DTL. If SGS continues lower and crosses its zero line and turns "SHORT", I would start opening short positions in SPX by buying SH.

SPX: S&P 500 Index    D-SMA: Daily - Simple Moving Average
DJI: Dow Jones Industrial Index    D-EMA: Daily - Exponential Moving Average
DJT: Dow Jones Transportation Index    PDL: Primary Downtrend Line
NAZ: NASDAQ Composite Index    PUL: Primary Uptrend Line
RUT: Russell 2000 Index    ADL: Active Downtrend Line
OEX: S&P 100 Index    AUL: Active Uptrend Line
NDX: NASDAQ 100 Index    DTL: Dynamic Trend Line   
TUL: Tentative Uptrend Line   TDL: Tentative Downtrend Line

Disclaimer: The views expressed are provided for informational purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.